Construction was completed on over 1.17 million square feet of new industrial space in the Greater Des Moines market in the second quarter, with 18% of the space preleased, CBRE Inc. reported in its latest market report. Just over 370,000 square feet of industrial space remains under construction, according to the report.

Overall, the vacancy rate of warehouse and distribution space in the Des Moines area was 6.34% in the second quarter; the vacancy rate for flex space was 3.77%, according to CBRE’s report.

The largest project under construction in the Des Moines area is in Cumming, where a 635,000-square-foot distribution warehouse is being built, according to JLL. The warehouse will be used mostly by Lomar Distribution, Hy-Vee Inc.’s specialty product division.

“The market will see gradual lease up of the existing speculative space due to continual industrial demand,” according to JLL’s report. “Construction cost increases have begun to slow or remain flat, but the tight labor market is still a challenge in the trade industries.”

To read the CBRE Q2 industrial market report, click here.
To read the JLL Q2 industrial market report, click here.